Indeed, NorthWestern submitted testimony to the PSC estimating that anticipated small solar projects could create over $215 million in additional costs to their customers over the next 25 years, if the PSC didn’t suspended the current rate of $66 per megawatt hour (mWh).

“I’m excited to see growth of solar energy across Montana, but the Consumer Counsel presented a very compelling argument regarding the negative effect that the current, inflated rate has on consumers, and we could not let that happen,” said Commissioner Bob Lake, adding, “All solar projects that have signed both contracts and interconnection agreements with NorthWestern Energy prior to the commission’s action today will be allowed in at the current rate of $66 per MWh. All other projects will have the ability to negotiate a contract price with NorthWestern Energy. The Commission stands ready to resolve matters on which QFs and NorthWestern are unable to mutually agree.”

Commission Vice-Chairman Travis Kavulla dissented, saying, “These smaller projects should have the opportunity to obtain contracts at rates that represent the best estimate of what a utility itself would have to spend to supply itself energy and capacity. Rather than updating our rate, the commission has thrown out the availability of those rates entirely. Even if this were a good idea, I do not believe this approach is lawful.”

Also dissenting, Commissioner Kirk Bushman, commented, “NorthWestern Energy’s customers are completely exposed to extremely inflated prices from all QFs, not just solar. Anything short of suspending the full QF tariff is a failure on behalf of the commission.”

The Commission’s temporary suspension of the QF-1 rate for solar projects will remain in effect until a new rate is established about six months from now.